Walker County and its cities negotiate split on sales tax proceeds
The Walker County government and its incorporated cities have signed an agreement on how to split up sales tax revenue for the next decade.
Over the course of 10 years, the Local Option Sales Tax (LOST) generates more than $50 million for the county and cities and accounts for significant portions of their budgets.
The one-percent LOST was implemented by the Georgia Legislature in 1975 as a plan to keep property taxes in check. Every 10 years, after the U.S. Census, counties and the cities within in them must renegotiate how the taxes will be divided among them.
A major consideration for distribution purposes is population, which is why negotiations are held shortly after a census. According to Census data, since the 2010 Census, Walker County has lost 1,102 residents. Three of the county’s five incorporated cities have lost residents and two have gained residents.
Current population estimates, based on the 2020 Census are:
♦ Walker County: 67,654 (down 1,102 from 2010)
♦ LaFayette: 6,888 (down 233 since 2010)
♦ Rossville: 3,980 (down 125 since 2010)
♦ Chickamauga: 2,917 (down 184 since 2010)
♦ Lookout Mountain: 1,641 (up 39 since 2010)
♦ Fort Oglethorpe (only a small portion of Fort Oglethorpe is in Walker County): 358 (up 105 since 2010)
During the last 10-year LOST period, which began in 2013, the county received 70% of the special sales tax and 30% was split among the cities. This period, beginning 2023, the county will receive 65% and the cities will split 35%.
The breakdown for the cities looks like this:
LaFayette: 15.2737%
Rossville: 8.8254% Chickamauga: 6.4683% Lookout Mountain: 3.6388% Fort Oglethorpe: 0.7938%